Section 6: Maximum Payment Calculations

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The amount that an owner can receive, up to the maximum approved supplement, depends on and is limited by the total cost of his replacement dwelling. Therefore, when an owner retains a dwelling and claims a supplement, determine the total eligible costs, which shall include the following:

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  • the retention value of the dwelling;
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  • the cost to move, restore and bring the retained dwelling to DSS standards;
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  • the cost of installing utilities;
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  • the fair market value of the replacement site. Document the fair market value of a parcel remainder or a replacement site (land) previously acquired by a displacee in ROW PD’s files according to Ownership of Replacement Dwelling Before Displacement.
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  • the costs for reasonable landscaping and other items may be eligible costs if these items were part of the original property and were not excluded (carved-out) from the subject’s value before computing the displacee’s supplement.

Utility hookup fees, service deposits and other items normally paid for as moving expenses and betterments or additions to the real property are not eligible costs for computing a housing supplement. If the dwelling is retained and moved to the owner’s remainder, carve-out the subject’s value according to policies on carve outs of excess land and improvements in Chapter 6, Establishing Right of Way Values, ROW Appraisal and Review Manual.

The retention value is not included in the housing supplement computations if the owner subsequently sells or does not occupy the subject dwelling.

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